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Is entering on two separate K-1 inputs the only way to correctly reflect passive and nonpassive income when a partnership has self-rental and passive rental properties?

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Level 1
last updated ‎December 07, 2019 9:23 AM

Taxpayer has a partnership, under which he owns two rental properties. One is a self-rental and one is not. Both rentals have positive net income. In this situation, the self-rental should be non-passive income and the other rental should be passive, correct? But I can only get Lacerte to classify all as non-passive or all as passive on his K-1 input in the individual 1040. What is the best way to correct this?

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last updated ‎December 07, 2019 9:23 AM

In that situation, I enter it as multiple K-1s. (Actually, I enter rental activities as multiple K-1s routinely, unless the client has elected to aggregate.)

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last updated ‎December 07, 2019 9:23 AM

In that situation, I enter it as multiple K-1s. (Actually, I enter rental activities as multiple K-1s routinely, unless the client has elected to aggregate.)

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Level 15
last updated ‎December 07, 2019 9:23 AM
Me, too....
And it's one of those returns I'm working on now, with 40 plus K-1's with ordinary and rental income/loss that is driving me bonkers :smile:   The spreadsheet I use to reconcile the return is rather involved.
Former Chump... umm.... AllStar.
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